Lignite, often referred to as brown coal, or Rosebud coal by Northern Pacific Railroad, is a soft brown fuel with characteristics that put it somewhere between coal and peat. It is considered the lowest rank of coal; it is mined in Germany, Russia, the United States, Australia and many European countries, and it is used almost exclusively as a fuel for steam-electric power generation.
Lignite has a high content of volatile matter which makes it easier to convert into gas and liquid petroleum products than higher ranking coals. However, its high moisture content and susceptibility to spontaneous combustion can cause problems in transportation and storage. Lignite can be separated into two types. The first is xyloid lignite or fossil wood and the second form is the compact lignite or perfect lignite.
 

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